Directions have been attached this is considered chapter 3 incase you need to look into the textbook I have attached it. However, you must use GRETL and I have attached the dataset that is being
used as well.
Chapter 3 Problem Set

Read these instructions carefully. If performing regressions, provide the output. For full credit, show your work. Answer in a clear, precise, and concise manner. This assignment will be graded on
precision, completion, and professionalism.

Suppose that you are interested in buying and Apple iPod (either new or used) on eBay but you want to avoid overbidding. One way to get an insight into how much to bid would be to run a regression
on the prices for which iPods are sold in previous auctions. Load up into gretl the dataset IPOD3 and answer the following questions.

1. What would your dependent variable be? Why?
2. Provide a descriptive statistics summary and comment on the sample size and the possibility of outliers. Paste the output from gretl immediately after this question.
3. If the iPods can only have one of three conditions (new, used with scratches, and used without scratches), what percentage of the iPods in the sample are used without scratches?
4. Specify a model, including the dependent variable and independent variables, that would allow you to quantify the three different conditions of the iPods and to take into account the number
of bidders for the iPod.
5. What would the expected signs of your coefficients be? Why?
6. Estimate your model in gretl. Paste the output from gretl immediately after this question.
7. Document your results.
8. Provide a quantitative interpretation of your coefficients (only quantitative, not qualitative).
9. Interpret the R2 and the adjusted R2.